Living the high life has always been associated with wealth and status. Unless you’re really affluent, you might think that a penthouse is only reserved for celebrities and other ‘first-class citizens’ in the Australian society. But that’s not necessarily true.
Buying a penthouse for sale in Brisbane, Sydney or Melbourne doesn’t always have to be paid in full. Cash is important, of course, but having the means to pay for the entire cost of such a luxury property upfront is not a requirement to enjoy this posh lifestyle, according to Pointcorp.com.au.
Just like other types of properties, you can apply for a mortgage and own your dream penthouse with less out-of-pocket expenses.
Size Dictate Deposits
A down payment is, of course, necessary to convince a home loan provider to your application; the amount you have to put down, however, varies. The size of your deposit depends on the size and price of the penthouse. The biggest the unit you’d like to purchase, the larger the deposit you’d most likely have to pay.
Every lender has a unique way of determining the reasonable down payment for the home loan, but this is the general rule.
Income Affects Interest
If you can prove that you have plenty of room to repay your penthouse loan every month, then you might be more entitled to a lower interest rate. A large monthly salary isn’t always enough to lure any lender. Mortgage providers would meticulously examine your debt-to-income ratio to see how capable you are in shouldering this financial responsibility.
Brokers Wouldn’t Break the Bank
A penthouse loan is relatively uncommon in some markets, as these luxury units are typically marketed to buyers willing to pay for everything upfront. This is why it might worth your while to use a mortgage broker to access a long list of home loans, especially those unadvertised.
A broker’s services are free, but they may just be a small price to find the financial product you need to finance your penthouse purchase. Nevertheless, always use your due diligence to ensure you wouldn’t be charged with hidden fees.
Penthouse living may not always within reach of everybody, but it’s not necessarily exclusive to the elite all the time. With the right loan product, you could wake up in your luxury unit sooner than you imagine.